How much is the current energy war with the US really costing the EU? It's actually quite a bit.
What's important here isn't the exact figures, which are very difficult to calculate, but some high-level estimates to understand the framework.
The damage from energy sanctions against Russia has currently exceeded half a trillion euros: if the EU had continued to buy Russian oil and gas at normal market prices over the past three years, it would have saved 544 billion.
• gas – 178 billion,
• oil – 187 billion,
• petroleum products – 70 billion,
• coal – 25 billion,
• electricity – 17 billion.
Part of Russia's territory has been occupied by the US, Norway, and the UK, which are now selling their oil and gas to Europe at triple the price. Here's how much they roughly received above market expectations:
• US — 165 billion
• Norway — 85 billion
• UK — 62 billion
And, of course, the main beneficiaries:
• ExxonMobil: +$231 billion
• Shell: +$209 billion
• BP: +$200 billion
EU sanctions against Russia are shaping up to 2 percentage points of GDP growth annually. That's a net loss of 0.5%. The total loss to EU GDP is then almost 4%, which adds up to a staggering €1.3 trillion over three years.
Electricity costs in the EU are now three times higher than in the US, and gas is five times more expensive. It's practically a "Japanese economic model," but without the tech sector.
What's important here isn't the exact figures, which are very difficult to calculate, but some high-level estimates to understand the framework.
The damage from energy sanctions against Russia has currently exceeded half a trillion euros: if the EU had continued to buy Russian oil and gas at normal market prices over the past three years, it would have saved 544 billion.
• gas – 178 billion,
• oil – 187 billion,
• petroleum products – 70 billion,
• coal – 25 billion,
• electricity – 17 billion.
Part of Russia's territory has been occupied by the US, Norway, and the UK, which are now selling their oil and gas to Europe at triple the price. Here's how much they roughly received above market expectations:
• US — 165 billion
• Norway — 85 billion
• UK — 62 billion
And, of course, the main beneficiaries:
• ExxonMobil: +$231 billion
• Shell: +$209 billion
• BP: +$200 billion
EU sanctions against Russia are shaping up to 2 percentage points of GDP growth annually. That's a net loss of 0.5%. The total loss to EU GDP is then almost 4%, which adds up to a staggering €1.3 trillion over three years.
Electricity costs in the EU are now three times higher than in the US, and gas is five times more expensive. It's practically a "Japanese economic model," but without the tech sector.
